Credit Card Payoff Calculator
Minimum payments are a trap. This calculator shows you exactly how deep.
⚠️ Minimum Payments (2% or $25)
Min payment: $60.00/mo (starting amount — shrinks as balance drops)
Time to payoff: 30 years 10 months
Total interest: $10,181
✅ Fixed $150/month
Time to payoff: 2 years 1 months
Total interest: $679
You save: $9,502
Interest Comparison
About This Calculator
How It Works
This calculator shows you the real cost of carrying a credit card balance by comparing two payoff strategies side-by-side: paying only the minimum each month versus paying a fixed amount. The minimum payment scenario is particularly eye-opening — because minimum payments are calculated as a percentage of the remaining balance, they shrink as the balance shrinks, stretching the payoff timeline dramatically while interest compounds. The fixed payment scenario shows how much faster and cheaper a firm monthly commitment gets you out.
The Formula
Months to payoff = -log(1 - (r × balance / payment)) / log(1 + r). Real minimum payments recalculate as % of current balance each month, which is what makes them shrink and stretch the payoff timeline.
When to Use This
Use this any time you're carrying a credit card balance and wondering whether to pay it off aggressively or slowly. It's also useful for deciding between balance transfer options — seeing the full interest cost of your current card versus a lower-rate alternative makes the value of a transfer fee immediately obvious. If the minimum payment scenario number shocks you, that's the intended effect.
Limitations
This calculator uses a fixed APR for the entire payoff period, but many cards have variable rates that change with market conditions. Minimum payment calculations also vary by issuer — some use 1% of balance plus interest, others use flat minimums, others use 2% of balance. The model here uses a percentage-based minimum, which is common but not universal. Check your card's terms for the precise calculation.
Example
$3,000 at 19.99% APR: true minimum payments (2% of the declining balance, recalculating monthly) take nearly 31 years and cost $10,181 in interest — more than triple the original balance. A fixed $100/month clears it in 3.5 years and costs $1,193. The math speaks for itself.
Did You Know?
If you have a $5,000 balance at 20% APR and only make minimum payments, it takes nearly 44 years to pay off and costs over $20,000 in interest — four times the original balance. Minimum payments are, mathematically speaking, a terrible idea.
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Minimum Payments Are a Trap — Here's the System to Escape It
You've just seen how long it takes — and how much it costs — to pay off a credit card balance. That number is uncomfortable for a reason. Credit card interest is designed to keep you paying as long as possible, and minimum payments are designed to make that feel manageable.
The good news: with a clear system and a concrete plan, most people can pay off credit card debt significantly faster than their statement suggests. The key is understanding exactly what to do with every dollar — not just 'pay more than the minimum.'
Our pick: I Will Teach You to Be Rich by Ramit Sethi
I Will Teach You to Be Rich is a New York Times and Wall Street Journal bestseller that covers exactly what credit card payoff calculators don't — the psychological side of debt, how to negotiate lower interest rates with your card issuer (a call that takes 10 minutes and often works), how to automate your finances so you're paying down debt without thinking about it, and how to build a system that prevents future credit card debt from accumulating. Written in a direct, no-nonsense voice that actually makes personal finance readable. Second edition, paperback, 4.7 stars with thousands of verified reviews.
If you've just seen your payoff timeline and want to cut it in half — this book gives you the exact system to do it.
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